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Public sector growth in the British Cape Colony: Evidence from new data on expenditure and foreign debt, 1830-1910

Gwaindepi, Abel LU and Fourie, Johan (2020) In South African Journal of Economics 88(3). p.342-367
Abstract
Abstract
The public expenditure shifts that took place following the discovery of diamonds and gold during the second half of the nineteenth century had far-reaching consequences for southern Africa’s development. Using new data for public expenditure and foreign debt in the Cape Colony and evidence from Cape parliamentary budget debates, we trace and explain the growth of the public
sector. We find that the coincidence of mineral discovery in 1867 and the granting of responsible government status rapidly accelerated the growth of the public sector. Owing to strong mining interests, railways accounted for more than 70% of the public works expenditure from the 1880s onwards. Spending on human capital and welfare enhancement remained... (More)
Abstract
The public expenditure shifts that took place following the discovery of diamonds and gold during the second half of the nineteenth century had far-reaching consequences for southern Africa’s development. Using new data for public expenditure and foreign debt in the Cape Colony and evidence from Cape parliamentary budget debates, we trace and explain the growth of the public
sector. We find that the coincidence of mineral discovery in 1867 and the granting of responsible government status rapidly accelerated the growth of the public sector. Owing to strong mining interests, railways accounted for more than 70% of the public works expenditure from the 1880s onwards. Spending on human capital and welfare enhancement remained limited. Both the quantitative and qualitative evidence suggests that the mining elites managed to build coalitions that swayed public expenditure decisions towards self-serving ends.
JEL Classification: H5, H54, H63, N17, F54
Keywords:
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and
organization
publishing date
type
Contribution to journal
publication status
published
subject
keywords
Cape Colony, economic history, government expenditure, infrastructures, public debt, South Africa
in
South African Journal of Economics
volume
88
issue
3
pages
367 pages
publisher
Wiley-Blackwell
external identifiers
  • scopus:85087623558
ISSN
0038-2280
DOI
10.1111/saje.12257
language
English
LU publication?
yes
id
ce8812b1-2758-4dbb-83fb-b844598010a5
date added to LUP
2020-06-06 11:21:08
date last changed
2022-04-18 22:38:28
@article{ce8812b1-2758-4dbb-83fb-b844598010a5,
  abstract     = {{Abstract<br/>The public expenditure shifts that took place following the discovery of diamonds and gold during the second half of the nineteenth century had far-reaching consequences for southern Africa’s development. Using new data for public expenditure and foreign debt in the Cape Colony and evidence from Cape parliamentary budget debates, we trace and explain the growth of the public<br/>sector. We find that the coincidence of mineral discovery in 1867 and the granting of responsible government status rapidly accelerated the growth of the public sector. Owing to strong mining interests, railways accounted for more than 70% of the public works expenditure from the 1880s onwards. Spending on human capital and welfare enhancement remained limited. Both the quantitative and qualitative evidence suggests that the mining elites managed to build coalitions that swayed public expenditure decisions towards self-serving ends.<br/>JEL Classification: H5, H54, H63, N17, F54<br/>Keywords: <br/>}},
  author       = {{Gwaindepi, Abel and Fourie, Johan}},
  issn         = {{0038-2280}},
  keywords     = {{Cape Colony, economic history, government expenditure, infrastructures, public debt, South Africa}},
  language     = {{eng}},
  month        = {{07}},
  number       = {{3}},
  pages        = {{342--367}},
  publisher    = {{Wiley-Blackwell}},
  series       = {{South African Journal of Economics}},
  title        = {{Public sector growth in the British Cape Colony: Evidence from new data on expenditure and foreign debt, 1830-1910}},
  url          = {{http://dx.doi.org/10.1111/saje.12257}},
  doi          = {{10.1111/saje.12257}},
  volume       = {{88}},
  year         = {{2020}},
}